What should householders' insurance include?

Apnainsurance.com Research Bureau

02 Jan 2008

If you intend to buy householders' insurance, you
should purchase a policy that provides cover for your house as well as all the
objects in it. However, do keep a few points in mind:

Make sure that
you read and understand the policy - coverage, exceptions, and exclusions in
the plan. Otherwise, you might be unpleasantly surprised to find out that your
householders' insurance plan has exclusions you least expected; and more
importantly, that you cannot claim in the event of a burglary or any other
mishap. Your cover, therefore, should include your house, your belongings,
your liability to others if some
mishap occurs, and your living expenses
if you are forced out of your house. Basically, if a disaster occurs, your
policy should help you to rebuild your home and replace everything in it.

Take an
inventory of your possessions. If you have to file a claim, two things need to
be done - prove you own certain
items and verify their value. Some insurance
companies advise clients to go through their homes with a video camera, walk
through each room, and ensure that you have everything you own on tape. Keep
the tape in safe custody.

Always make sure
that you update your policy value - to cover various assets that you might add
to your house as well as the rate of inflation. Also, ensure the amount of
cover taken is realistic; especially if you have refurnished your home.